Bhubaneswar/Angul, June 6: The revival process of the Talcher fertilizer plant has begun with the existing unit being dismantled.

A Delhi-based scrap dealer has started dismantling the 34-year-old plant.

“Once the dismantling process is over and the site is cleared, a new fertilizer plant with modern technology will come up,” said an official.

Former Union minister for fertilizer and chemicals Srikant Jena, who had pushed the project for revival, said: “The plant will be revived jointly by central public sectors Rastriya Chemical and Fertilizer Limited, Gas Authority of India Limited, the Coal India Limited and Fertilizer Corporation of India (FCI).”

Four FCI plants are operating in Talcher, Ramagundam, Sindhri and Gorakhpur.

The proposed complex will consist of a 2,700MTPD ammonia plant, a 3,850MTPD urea plant, an 850 MTPD nitric acid plant and a 1,000 MTPD ammonium nitrate plant.

The coal-based urea plant was set up by the Fertilizer Corporation of India at Talcher in 1980 to cater to the needs of Odisha and Bengal.

The plant used to produce 600 to 700 metric tonnes of urea per day.

The FCI has awarded the Rs 112-crore contract to dismantle the plant to the Delhi-based Tradex Private Limited. The job will be completed in a year.

Once the dismantling process is over, the authorities will get an area of 200 acres. Another 400 acres of barren land is available on the plant premises. The new plant will come up on these 600 acres, official sources said.

General manager of FCI Irfan Ahmed said: “After the (Union) cabinet approval to revive the plant, the ground work is in progress. Geo-technical study and environment assessment study is also being done.”

The plant’s accumulated loss had crossed Rs 1000 crore. The plant was closed down in April 1999. In 1992, the matter was referred to the Board for Industrial and Financial Reconstruction that had declared it as a sick unit.